What’s the difference between trade associations & buying groups, & which is the best kind of organization to belong to?
It’s just a fact of life: No one ever feels like they have enough time or enough money. In a multi-faceted business like rent-to-own, that truism somehow seems even truer – your calendar is perpetually full, with unexpected urgencies sandwiched between scheduled events; and whenever profits rise or a windfall appears, there’s always something waiting to eat up the newly earned treasure.
So when a business organization invites you to join – meaning expenditures of both time and money – it’s easy to come up with reasons why it’s not worth it, especially if you already belong to such a group. I’m already a member of a buying group, you think; why would I need to belong to a trade association, too? Or, conversely, I’m already involved in my industry’s trade association, and getting pretty good deals on my own; is it really worth the extra expense to be part of a buying group?
The RTO industry has both a national [APRO] and many state trade associations, as well as a few well-established buying groups [TRIB Group and Nationwide RentDirect]. Let’s do a deep dive into the purposes of these organizations, the benefits they offer, and the differences between them.
It’s important to begin with the understanding that while trade associations and buying groups might share the same potential membership base, they’re not diametrically opposed to each other. They’re not in direct competition for those members because by definition, they do different things and offer different benefits.
But they do have some commonalities. Both buying groups and trade associations seek the same overarching goal, which is to see the rentto- own industry succeed. They both also want to provide opportunities and events in which they connect the RTO vendor and rental dealer communities.
But while buying groups work to accomplish that by getting individual owner- operators better deals, trade associations work to achieve it by advancing the industry as a whole. Buying groups act as a conduit between rental dealers and vendors, to offer members great discounts and improve their profitability. APRO’s concentration is broader; legislation, education, scholarships, disaster relief – it’s more about what rent-to-own is, how it does business, and how it relates with the ‘outside’ world.
Buying Groups
The Rental Industry Buying [TRIB] Group | Nationwide RentDirect
The role buying groups play within the rent-to-own industry has evolved over time. While the largest RTO companies can offer their franchisees intrinsic volume savings, separate buying groups initially formed to provide pooled buying power to smaller businesses and independent dealers, offering them the opportunity to combine their purchase volume with vendors in order to pay lower net prices for products. Then, suppliers began sweetening the deal with unique members- only products and volume rebate programs – quarterly, annual, or performance- based – as incentives for owner- operators to push their product lines.
Today, both TRIB Group and Nationwide RentDirect provide their members with such financial advantages, as well as some bonus benefits that go beyond the bottom line.
Both buying groups and trade associations seek the same overarching goal, which is to see the rent-toown industry succeed. They both also want to provide opportunities and events in which they connect the RTO vendor and rental dealer communities.
Both TRIB Group and Nationwide RentDirect offer their members these key fiscal benefits:
• Better net pricing through a combination of lower invoice pricing and quarterly, annual, and performance- related rebates;
• Unique product offerings available to members only;
• Better payment terms, like higher prompt-payment discounts or extended standard terms;
• Centralized negotiating for major product categories can not only improve results, but also free up time for rental dealers to focus on growing their business; and
• Centralized billing means most product purchases will be covered by a single payment to the buying group – which can translate into greater efficiencies and cost savings for members’ accounting offices.
TRIB Group, established in 1983, is the oldest and largest member-owned and -operated nonprofit buying cooperative especially for the rent-to-own industry. TRIB Group is a strategic alliance partner with Associated Volume Buyers [AVB]’s BrandSource division; AVB has been one of the biggest buying groups for North American businesses for more than 50 years.
In addition to the financial benefits TRIB Group has always offered, the organization provides weekly and monthly member communications via email, and over the past several years, has developed more opportunities for members to meet and share information – including the group’s annual Meeting of the Minds event, and the TRIB Trip retreat.
Nationwide RentDirect, as a division of Nationwide Marketing Group, is among North America’s largest buying and marketing organizations for rental dealers. And yes, you guessed it, marketing is how RentDirect differentiates itself. Beyond lower prices and rebate programs, the group offers digital, video, and print marketing, either free or at a dramatically reduced rate. Because the great deals members get on products mean nothing if no one comes into their stores; successful marketing is what helps turn inventory into sales.
Trade Associations
Association for Progressive Rental Organizations [APRO] | State & Regional Associations
When Benjamin Franklin said An investment in knowledge pays the best interest, he might have been talking about trade associations. Today, there are currently more than 8,000 such organizations in the U.S., and involvement in them is an investment – in your personal knowledge, your professional career, and your chosen industry.
APRO, founded in 1980, is the national nonprofit trade association and official voice of the rent-to-own industry; the organization also coordinates with dozens of regional and state associations across the country to support, represent, and protect RTO.
APRO’s main membership benefits include:
Advocacy
APRO’s primary – and unique – duty is safeguarding the rent-to-own industry and transaction, sharing the needs of APRO members through legislative efforts.
APRO’s legislative team continuously monitors Congressional and state legislative activity for measures that might affect RTO; each year, they’re joined by concerned members at the association’s annual Legislative Conference. During face-to-face meetings with Congressional members, rental dealers have a chance to discuss how rent-toown benefits its customers, communities, employees, and the economy, and to build positive relationships – before a crucial issue arises.
Belonging to APRO benefits your business while also projecting a positive image of your company to both internal and external audiences.
Education
Continuing education and development is essential to reaching the top of any industry, and to staying there. APRO provides its members with a wide variety of educational opportunities throughout the year, from expert-led topical webinars to peer-to-peer learning breakouts to best practices sharing sessions. The breakneck pace of today’s technology and market competition means industry best practices are continually updating and of the utmost importance for business success.
Exchange of ideas
APRO provides a space for members to communicate with competitors in a collaborative environment – a forum for like-minded colleagues to come together and share innovative ideas, discuss common problems and possible solutions, and develop new ways to improve the rent-to-own industry. The networking and camaraderie that naturally occur through APRO give members a chance to connect, to strengthen ties, and to build lucrative business relationships, partnerships, or alliances, as well as lifetime friendships.
News and research
Through its award-winning magazine, regular e-newsletters, and social-media presence, APRO provides timely access to news or developments with the power to affect rent-to-own businesses. With deep, well-established communications channels, APRO helps its members consistently receive and share information that can help them in their day-to-day business dealings. Additionally, APRO gauges the wellbeing of the RTO industry as a whole through research and its insight-full Industry Health Survey.
Public relations
Belonging to APRO benefits your business while also projecting a positive image of your company to both internal and external audiences. Your investment and involvement show your commitment to doing business legally, ethically, and following best practices. It also helps APRO boost rent-to-own’s reputation – sharing the real, positive story of the industry, rather than letting people depend upon inaccurate perceptions.
So it seems there’s no need for a coin toss when deciding which type of industry organization to join – trade association or buying group – because it’s not an either-or proposition; when it comes to investing in your industry and your business, trade associations and buying groups are really just two sides of the same very valuable coin.
While there’s some crossover in terms of information sharing and networking opportunities, trade association and buying group activities mostly complement each other. And while they serve different purposes, both are essential to the betterment of the rentto- own industry and the success of its individuals.
Kristen Card has been a contributing writer for RTOHQ: The Magazine for more than 15 years.
